Most organisations have no agreed definition of what marketing effectiveness means
40%
clear effectiveness goal
20%
common understanding
StatBrand Strategy
Only 40% of senior marketing decision-makers believe their organisation has a clear marketing effectiveness goal, and just 20% strongly agree there is a common understanding between marketing and the rest of the business on how to measure it.
Source
The Effectiveness Equation - Google Market Insights EMEA, with Kantar, Nielsen, Ekimetrics, Ipsos MMA, the Behavioural Architects and WARC (2025)
Michal Protasiuk, Ahmet Bas, Jonas Christensen, Vanessa Bruns, Emily Allen and Jonny Protheroe (Google Market Insights, EMEA)
p. 2 and p. 5, The Effectiveness Equation (2025), Google/Kantar UK, FR, DE, n=476 senior marketing decision-makers, May 2023
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PrincipleMarketing measures itself on only one side of the profit equationStatBrands with pricing power command roughly twice the price of brands without itStatPricing power comes from meaningful difference, not from salienceCaseA UK skincare brand turned a 2% revenue increase into 7% by lowering its price elasticity firstPrinciplePromotion-heavy communication raises price sensitivity; balanced brand building lowers itStatPricing power and resistance to price rises correlate strongly and measurablyStatHalf of advertising's sales effect arrives after the fourth monthStatMedia returns peak with roughly half to sixty per cent of the budget in brand buildingStatRaising brand awareness lifts short-term sales as well as long-term onesWarningWinning back share costs nearly twice what cutting the budget savedWarningEvery dark quarter costs future revenue that takes years to rebuildWarningShifting a shrinking budget into performance can destroy the returns performance depends on